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SENATE FLOOR VERSION
February 14, 2023
AS AMENDED
SENATE BILL NO. 144 By: Hicks
[ prescription drugs - reports - requirements - rules
- codification - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 6970 of Title 36, unless there
is created a duplication in numb ering, reads as follows:
A. As used in this section:
1. “Manufacturer” means any person or entity that holds the
national drug code for a prescription drug and is engaged in the
production, preparation, propagation, compounding, c onversion, or
processing of drug pro ducts for treating diabetes in this state;
2. “Pharmacy” means a pharmacy as defined pursuant to Section
353.1 of Title 59 of the O klahoma Statutes; and
3. “Pharmacy benefits manager” means a pharmacy benefits
manager as defined p ursuant to Section 6960 of Title 36 of the
Oklahoma Statutes.
B. On or before February 1 of each calendar year, the Insurance
Department shall compil e:
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1. A list of prescription drugs that the Depar tment determines
to be essential for treating di abetes in this state and the
wholesale acquisition cost of each drug on the list. The list shall
include, but not be limited to, all forms of insuli n and biguanides
marketed for sale in this state ; and
2. A list of prescription drugs described in paragraph 1 of
this subsection that have been subject to an increase in the
wholesale acquisition cost of a percentage equal to or greater than:
a. the percentage increase in the medical care index of
the Consumer Price Index, during the immediately
preceding year, or
b. twice the percentage increase in the medical care
index of the Consumer Price Index, during the
immediately preceding two calendar years.
C. On or before April 1 of each cal endar year, the manufacturer
of a prescription drug that appears on the most current list
compiled by the Department pursuant to subsection A of this section
shall prepare and submit to the Department, in a form to be
prescribed by the Department, a report that shall include:
1. The cost of the drug to the consumer;
2. The total administrative expenditures relating to the drug
including marketing and advertisin g costs;
3. The profit that the manufacturer has earned from the drug
and the percentage of the total profit of the manufacturer for the
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period during which the manufacturer has marketed the drug for sale
that is attributable to the drug;
4. The total amount of financial assistance that the
manufacturer has provided th rough any patient prescription
assistance program;
5. The cost associated wi th coupons provided dire ctly to
consumers and for programs to assist consumers in paying copayments,
and the cost to the manufacturer attributable to the redemption of
those coupons and the use of thos e programs;
6. The wholesale acquisition cost of the drug;
7. A history of any increases in the wholesale acquisition cost
of the drug over the five (5) yea rs immediately preceding the date
on which the report is submitte d, including the amount of each
increase expressed as a percentage of the total wholesa le
acquisition cost of the drug, the month and year in which each
increase became effective, and any explanation f or the increase;
8. The aggregate amount of all rebates that the manufacturer
has provided to pharmacy benefits managers for sales of the dr ug
within this state; and
9. Any additional information deemed necessary by the
Department for the purpose of anal yzing the cost of prescription
drugs that appear on the list compiled pursuant to subsection B of
this section.
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D. On or before April 1 of a year in which a drug is included
on the list compiled pu rsuant to subsection B of this section, the
manufacturer of the drug shall submit to the Department a report
describing the reasons for the increase in the wholesale acquisi tion
cost of the drug described in that subsection. The report shall
include, but not be limited to:
1. A list of each factor that has cont ributed to the increase;
2. The percentage of the total increase that is attributable to
each factor;
3. An explanation o f the role of each factor in the increase;
and
4. Any other information prescribed by rule of the Department.
E. Except as provided in this section, a pharmacy benefits
manager shall submit to the Department a report that shall include:
1. The total amount of all rebate s that the pharmacy benefits
manager negotiated with the manufacturers during the immediately
preceding calendar yea r for prescription drugs included on the list
compiled by the Department pursuant to subsection B of this section;
2. The total amount of all rebates described in paragraph 1 of
this subsection that were ret ained by the pharmacy benefits manager;
3. The total amount of all rebates described in paragraph 1 of
this subsection that the pharmacy benefits manager negotiated for
purchases of drugs for use by:
a. recipients of Medicare,
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b. recipients of Medicai d,
c. persons covered by third parties that are gover nmental
entities not described in subparagraphs a and b of
this paragraph,
d. persons covered by third parties that are not
governmental entities, and
e. persons covered by a plan described in paragraph 4 of
this subsection to the extent required by a contract
entered into pursuant to paragraph 5 of this
subsection;
4. Except as otherwise provi ded in subparagraph c of paragraph
3 of this subsection, the requirements of this section do not apply
to the coverage of pres cription drugs under a plan that is subject
to the federal Employee Retirement Income Security Act of 1974 as
amended or any information relating to that co verage; and
5. A plan described in paragraph 4 of this subsection may, by
contract, require a pharmacy bene fits manager that manages the
coverage of prescription drugs under the plan to comply with the
requirements of this section.
F. The Department shall ana lyze the information submitted
pursuant to subsections C, D, and E of this section and publish a
report on the website created under s ubsection G of this section on
the price of the prescription drugs that appear on the most current
lists compiled by the Department pursuant to subsection B of this
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section, the reasons for any increases in those prices, and the
effect of those prices on o verall spending on prescription drugs in
this state. The report may include , but not be limited to,
opportunities for persons and entities in this state to lower the
cost of drugs for the treatment of diab etes while maintaining access
to the drugs.
G. 1. The Department shall create and maintain a website, to
be updated no less frequently than once each calendar quarter, and
shall place or cause t o be placed:
a. the list of prescription drugs compi led by the
Department pursuant to subsection B of this section,
b. the wholesale acquisition cost of each prescription
drug reported pursuant to subsection C of this
section, and
c. the reports compiled b y the Department pursuant to
subsection F of this subsectio n.
2. The Department shall ensure that the informa tion placed on
the website is organized so that each individual manufacturer has
its own separate entry on the webs ite.
3. The Department may es tablish additional or alt ernative
procedures by which a con sumer who is unable to access the Internet
or is otherwise unable to receive the information described in this
section may access this data. This shall include, but not be
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limited to, maintaining copies of the data reported pursuant to this
section maintained by the Department.
H. The Department shall pro mulgate rules to effectuate the
provisions of this section.
SECTION 2. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
February 14, 2023 - DO PASS AS AMENDED